Ford Motor said its electric vehicle business unit generated $1.8 billion in sales during Q3-2025 vs $1.4 billion in Q3-2024. Ford reported a $1.4 billion operating loss for its EV and software unit during the quarter and reaffirmed expectations of up to $5.5 billion in EV-related losses for 2025.
While Ford’s third-quarter revenue rose 9 percent year-on-year to $50.5 billion and earnings per share hit $0.45 — the automaker’s EV business remains a major drag on profitability.
Ford Pauses F-150 Lightning Production
In a notable strategic shift, Ford said production of its F-150 Lightning electric pickup will be paused indefinitely. The company will instead prioritize its gasoline-powered F-150 and SuperDuty trucks, which remain the core profit drivers of its business. Ford plans to boost production of these vehicles by 50,000 units across its Michigan and Kentucky plants next year to offset lost output from the Novelis disruption, Reuters news report said.
The move underscores Ford’s focus on profitability amid cooling EV demand in the U.S. market. Industry analysts expect EV sales to slow temporarily following the expiration of the federal $7,500 tax credit at the end of September, before gradually recovering in 2026.
EV Market Headwinds
Adding to Ford’s challenges, China’s tightening of export controls on battery materials and rare earths has heightened risks for global EV supply chains. These constraints, coupled with rising research and development expenses, have weighed on Ford’s margins in the electric segment.
Tariffs and Financial Outlook
Ford cut its annual profit guidance for the second time this year to between $6.0 billion and $6.5 billion in EBIT, down from its prior range of $6.5 billion to $7.5 billion. CFO Sherry House said the Novelis fire alone would cost Ford between $1.5 billion and $2 billion before taxes and interest — a hit only partially offset by tariff relief announced by the Trump administration.
Under the new tariff credit program, automakers will receive 3.75 percent of a U.S.-assembled vehicle’s retail price through 2030 to counter import tariffs on auto parts. Ford expects a net tariff impact of around $1 billion this year and a similar effect in 2026.
EV Future Still in Sight
Despite short-term retrenchment, Ford maintains long-term ambitions in electric mobility. CEO Jim Farley emphasized the company’s commitment to stabilizing EV operations and improving efficiency, noting progress in sourcing materials from other Novelis facilities and mitigating supply losses.
“We’ve made substantial progress in a short time to minimize the impact in 2025 and recover production in 2026,” Farley said.
Ford’s current strategy signals a pragmatic pivot — balancing EV investments with the sustained profitability of its traditional truck and SUV lineup — as it seeks to strengthen financial resilience before the next wave of electrification.
Baburajan Kizhakedath